DoD awards $56M to Northrop Grumman for LAIRCM B-KITS, impacting missile warning systems
Contract Overview
Contract Amount: $55,983,109 ($56.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2010-05-05
End Date: 2012-09-15
Contract Duration: 864 days
Daily Burn Rate: $64.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FY 10 DON LAIRCM B-KITS - IR MWS SENSORS AND PROCESSORS
Place of Performance
Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $56.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: FY 10 DON LAIRCM B-KITS - IR MWS SENSORS AND PROCESSORS Key points: 1. The contract for LAIRCM B-KITS, including IR MWS sensors and processors, was awarded to Northrop Grumman Systems Corporation. 2. This award represents a significant investment in the Department of the Navy's missile warning capabilities. 3. The firm-fixed-price contract spans over two years, indicating a defined scope and cost structure. 4. The lack of competition raises questions about potential price discovery and value for taxpayer dollars.
Value Assessment
Rating: questionable
The award amount of $55,983,109 for LAIRCM B-KITS is substantial. Without competitive bidding, it is difficult to assess if this price is optimal compared to potential market alternatives or previous procurements of similar systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition scenario. This limits price discovery and may result in higher costs for the government compared to a fully competitive process.
Taxpayer Impact: The lack of competition for this $56 million contract could lead to taxpayers paying a premium for essential missile warning systems.
Public Impact
Enhances the Department of the Navy's ability to detect and counter missile threats. Supports critical defense infrastructure and personnel safety. Potential for increased costs due to sole-source award impacts overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Limited transparency in cost justification
Positive Signals
- Addresses critical defense need
- Long-term contract provides stability
Sector Analysis
This contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is crucial for national security, but competitive procurement is vital to ensure cost-effectiveness.
Small Business Impact
The data does not indicate any subcontracting opportunities for small businesses. This award to a large prime contractor may limit small business participation in this specific procurement.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and value. Further oversight may be needed to confirm the necessity of a non-competitive award and the justification for the price.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Potential for inflated costs
- Lack of competitive benchmarking
- Limited small business involvement
Tags
search-detection-navigation-guidance-aer, department-of-defense, il, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $56.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. FY 10 DON LAIRCM B-KITS - IR MWS SENSORS AND PROCESSORS
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $56.0 million.
What is the period of performance?
Start: 2010-05-05. End: 2012-09-15.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or the absence of other responsible sources. The Department of Defense should have conducted a price analysis, potentially using historical data, cost breakdowns, or market research, to ensure the price was fair and reasonable despite the lack of competition.
How does the cost of these LAIRCM B-KITS compare to similar systems procured competitively by other military branches or allied nations?
A comparative analysis of costs for similar missile warning systems, procured either competitively by other branches or through international agreements, would be essential. Without this benchmark, it's challenging to ascertain if Northrop Grumman's pricing reflects market value or if the sole-source nature led to a premium.
What is the long-term strategic value and operational effectiveness of these specific LAIRCM B-KITS for the Department of the Navy?
The long-term value lies in the system's ability to protect naval assets and personnel from missile threats, enhancing operational readiness and survivability. Its effectiveness is measured by its reliability, accuracy, and integration with existing defense networks, contributing to overall force protection capabilities.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 600 HICKS RD, ROLLING MEADOWS, IL, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $55,983,109
Exercised Options: $55,983,109
Current Obligation: $55,983,109
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2010-05-05
Current End Date: 2012-09-15
Potential End Date: 2012-09-15 00:00:00
Last Modified: 2011-04-25
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